101 STAT. 1330-398
PUBLIC LAW 100-203—DEC. 22, 1987 "(B) the deferral period of the taxable year which is being changed.
»
"(3)
SPECIAL RULE FOR ENTITIES RETAINING 1986 TAXABLE
"*['- YEARS.—In the case of an entity's 1st taxable year beginning • after December 31, 1986, an entity may elect a taxable year
- under subsection (a) which is the same as the entity's last
taxable year beginning in 1986. 'J "(4) DEFERRAL PERIOD.—For purposes of this subsection, the
- ^ term 'deferral period' means, with respect to any taxable year of
/^ the entity, the months between— "(A) the beginning of such year, and "(B) the close of the 1st required taxable year ending within such year. "(c) EFFECT OF ELECTION.—If an entity makes an election under subsection (a), then— "(1) in the case of a partnership or S corporation, such entity shall make the payments required by section 7519, and "(2) in the case of a personal service corporation, such cor« poration shall be subject to the deduction limitations of section 280H. "(d) ELECTIONS.— —••-/^ • vj "(1) PERSON MAKING ELECTION.—An
,.,
election under subsection •;. (a) shall be made by the partnership, S corporation, or personal service corporation.
tj-i
"(2) PERIOD OF ELECTION.—
"(A) IN GENERAL.—Any election under subsection (a) shall .i remain in effect until the partnership, S corporation, or personal service corporation changes its taxable year. Any jif r^ au '* IV change to a required taxable year may be made without the consent of the Secretary. 3>l V "(^^ No FURTHER ELECTION.—If an election is terminated under subparagraph (A), the partnership, S corporation, or personal service corporation may not make another election under subsection (a). •y. "(3) TIERED STRUCTURES, ETC.—No election may be made under subsection (a) with respect to an entity which is part of a tiered structure other than a tiered structure comprised of 1 or more 4^^!;*?.!)' partnerships or S corporations all of which have the same taxable year. "(e) REQUIRED TAXABLE YEAR.—For purposes of this section, the term 'required taxable year' means the taxable year determined under section 706(b), 1378, or 441(i) without taking into account any taxable year which is allowable by reason of business purposes. Solely for purposes of the preceding sentence, sections 706(b), 1378, and 441(i) shall be treated as in effect for taxable years beginning before January 1, 1987. "(f) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section, including regulations to prevent the avoidance of subsection (b)(2)(B) or (d)(2)(B) through the change in form of an entity." (2) CONFORMING AMENDMENT.—The table of sections for part I of subchapter E of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 444. Election of taxable year other than required taxable year." (b) REQUIRED PAYMENTS.—
-»
�
